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19 01 2024

  • OIA Global

Suez & Panama Canal Operations Update

The Suez Canal and Panama Canal have recently encountered major geopolitical and environmental challenges. OIA Global is working to ensure timely and transparent communication. We encourage you to bookmark this webpage, where we will continue to publish important updates as both situations evolve. Please contact your dedicated OIA representative for anything urgent.

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Plane flying over rows of stacked containers at a port.

03 01 2024

    Red Sea Shipping Update: 3 January 2024

    Most of the world’s largest shipping firms are pausing shipments through the Red Sea amidst ongoing attacks by Houthi rebels. Expect delays for all shipments initially routed via the Suez Canal! The disruption continues to push up freight rates and lengthen delivery times.

     
    Surcharges & Rate Trends
    Multiple carriers have already declared Force Majeure and more carriers are expected to follow. Shipments on the water may be financially impacted by additional surcharges related to Force Majeure.

    • Carriers are implementing GRI and PSS surcharges on multiple routes, in particular the Transatlantic and Transpacific trades.
    • FAK rates have been implemented on the most affected routes (TPWB, TPEB to USEC) and are showing major price increases.

    More information

    Military attack helicopter and container ship in ocean

    26 12 2023

    • OIA Global

    Operation Prosperity Guardian Protects Red Sea Shipping Amidst Ongoing Attacks

    “Operation Prosperity Guardian” is bringing together multiple countries to jointly address security challenges in the Red Sea and the Gulf of Aden. It is estimated that 10-15% of global shipping flows through the Red Sea, making it a vital link for commercial goods, especially seaborne oil and liquified natural gas (LNG). Furthermore, roughly 40% of Asia-Europe trade passes through the Red Sea. The coalition’s goal is to bolster regional security and ensure freedom of navigation for all countries. We encourage you to reach out to your OIA Global representative if you’d like to receive updates about specific shipments. 

     

    • Expect delays for all shipments initially routed via the Suez Canal.

     

    • More than 280 container vessels—not counting tankers, bulkers, car carriers, or other vessel classes—have already diverted toward the Cape of Good Hope.

     

    • Multiple carriers declared Force Majeure and enacted emergency surcharges, which may negatively impact ships currently on the water. This graphic shows different ocean carriers’ surcharges.

    More information

    19 12 2023

    • Bloomberg
    • Financial Times

    Heightened Risk in Red Sea Amidst Houthi Attacks

    Amidst the ongoing Israel/Hamas conflict, Houthi rebels in Yemen have targeted and/or attacked multiple vessels in the Red Sea, creating a major risk for any ships transiting via the Suez Canal. Multiple shipping lines (Maersk, OOCL, etc.) have either paused this route completely or re-directed their ships via the Cape of Good Hope, a voyage that adds 1,900 nautical miles and takes twice as long. 

    • The U.S. Department of Defense is deploying naval assets to the Red Sea to assist. The U.S. Secretary of Defense said America and its allies (U.K., Canada, France, etc.) agreed to create a naval task force to counter the ongoing attacks. 
    • Asia-North Europe freight rates may climb as westbound voyages are paused and others are diverted around Africa

    Source: Ambrey Analytics, accessed via Bloomberg. Note: Shows Nov. 19–Dec. 18 and includes attempted attacks. 

    More information

    18 12 2023

    • International Railway Journal

    El Salvador's Government Invests in Project to Restore Country's Rail Operations

    El Salvador’s government announced a $700M investment in the Pacific Train project, which will connect the Salvadorean coast with Guatemala, Mexico, the U.S. and Canada. The standard gauge rail line will restore rail operations in the country for the first time in two decades.  

    Full story

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